Compared to the same period five years ago, the debt-to-income ratio across all income bands in SA is now at 122% and has reached 152% for those taking home R20,000 or more.
That's according to DebtBusters’ 2021 Q2 debt index, which has tracked trends quarter-on-quarter over the past five years.
Data from the index shows the debt-to-net-income ratio is at an all-time high, but there is some good news with more people seeking help and a significant increase in those who have completed debt counselling.
“Consumers enquiring about debt counselling are spending about 60% of their take-home pay to service debt,” the report says.
“The level of unsecured debt continues to increase: the level of unsecured debt is on average 32% higher than in 2016 and up by 49% among consumers taking home R20,000 or more. This is a direct result of consumers using unsecured debt to offset the erosion of their take-home pay.”
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